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MAIN HEADLINES FROM THIS ISSUE:

The twenty-second annual report to Congress on the impact of offsets in defence trade is long overdue. The report is usually published each January. We are told that the reason for the delay is to do with the new administration… said it is reasonable to speculate that president Trump and his administration haven’t a clue what the report is about.

Dr. Ajay Kumar, secretary (defence production), acknowledged that OEMs and the government are both dissatisfied with the current policy, and indicated that the MoD wishes to engage in a further dialogue with all stakeholders. Defence minister Nirmala Sitharaman said the armed forces have been given a free hand to procure their choice of equipment from Indian or foreign manufacturers instead of having to procure locally.

A newly released Request for Information (RfI) for the procurement of fighter jets asks contractors to provide significantly more detail regarding the technology transfer and IP proposals than is customary. OEMs will be put to significant cost and trouble to comply, especially as the MoD indicated it is only a fact-finding exercise and there is no commitment from the government to the programme.

The Ukrainian Cabinet of Ministers has adopted a resolution calling for a study of import substitution measures for military-industrial areas. The cabinet will create an interdepartmental commission to implement the initiative.